Home Buying in Jacksonville>Question Details

Mme_mcguire, Home Buyer in Jacksonville, FL

How long should closing take on Fannie Mae Homepath Foreclosure?

Asked by Mme_mcguire, Jacksonville, FL Thu Sep 9, 2010

We are trying to buy a condo in Jacksonville, FL. It is a Fannie Mae Homepath foreclosure. We had prior approval and made an offer, which was accepted very quickly. That was almost five weeks ago. Our Realtor has been no help, and our mortgage guy keeps saying it's the underwriters that we are waiting on. We've had to extend closing twice already, and now we're looking at a third extension. We're in a rental and starting to get really impatient. Is this normal for the closing process to take so long? We were initially told we could close in a matter of a week or two. I am totally new to this. No one can give us a legitimate reason as to why it keeps getting pushed back, so we're starting to get a really bad feeling about all of it. Are we wasting our time? Should we walk? It's a great deal and we love the condo, but I don't want to just sit around for months. Thanks!

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Pamala4’s answer
I tried to buy the same house for 7 months. 1 extention took 2 months to get a response back. After trying to buy this house when we were almost at the finish line the fannie mae agent, Kelvin Zalaya, refused to give us an extention for the appraisal who change his schedule and said he could not come out for another 3 weeks. my realtor was told by the fannie mae realtor that the fannie mae agent was angry that I had ask my state sentator and congressman for help. We are paying these people with our tax dollars to take advantage of us. How does it benefit the people to have all these forclosed properties that our tax dollars went towards these defuncted loans to not be sold? How is it benefiting the people to pay people to take advantage of us? How is it benefiting us, the people, to not sell these homes to perfect credit buyers? We need to sue. We should all get together as a group and do a class action. Let talk about this problem. Pamala Walls, pamala4@aol.com, 512-921-0351
0 votes Thank Flag Link Sat Jul 20, 2013
Has fannie mae extended your contract? I am in a similar situation and kind of not sure what to do.. my issues are not on my lender but on the title not being clear. How has it worked out for you?
0 votes Thank Flag Link Tue Mar 25, 2014
I'm definitely not a realtor or an expert in these matters, but I will personally never deal with Fannie Mae again. Dealing with Fannie Mae was the most stressful, aggravating, ridiculous experience I have ever encountered. I guess if you have months, even years to buy a home then have at it. I had neither the time nor the patience for them. We never looked back and thank our lucky stars we walked away from FM. Best of luck!
Flag Tue Mar 25, 2014
Apryl, we ended up walking away from it. It was a nightmare for us. After filing three extensions, we were told closing was in one week. This was the only reason we moved out of our rental, to avoid paying for another months lease as our landlord refused to reimburse us. We put 99% of our belongings in storage and moved into a hotel. Long story short we were in a hotel for almost 6 months. We filed more extensions, and after about 3 months of nothing but headaches, were told that the bank was pulling our loan. Apparently, with condos they check the ratio of renters vs owners. Because of the high foreclosure rate, it is really hard to get into a condo. Why it took that long for us to find that info out I will never know. That was the second condo we had tried to buy. We gave up on condos, and honestly I'm thankful all that happened now. We found a beautiful home in a nice community. Closing was quick and mostly stress free.
Flag Tue Mar 25, 2014
30 days is a reasonable time to close a purchase loan. FNMA HomePath can close quicker in some cases becuse they do not require an appriasal. Purchase transactions have a lot of moving parts and there can be delays. With that being said they should be able to communicate what the delay is and were it is comming from. Feel free to call with anyquestions on HomePath or HomePath renovation loans. 904-334-2498
Woody Sitterson
Remn
NMLS 484279
0 votes Thank Flag Link Wed Jan 15, 2014
I've never seen a financed transaction on Fannie Mae home close in a "week or two". The underwriters are the people that actually make the decision on whether to make the loan with the property you are purchasing as collateral. Think of your pre-approval as an initial screening. The underwriters' job is to dig deeper into your file for the purpose of determining the risk associated with lending. They will be reviewing your creditworthiness and the appraisal prior to granting the loan. Any defects found could delay the process. In my experience condo purchases are more heavily scrutinized by lenders than single family detached homes. They have a tendency to turnover and become rental communities.
0 votes Thank Flag Link Wed Oct 9, 2013
Mme_mcguire,

The issue is with your lender. It appears that they have sumitted your loan package to an underwriter for review and approval. They can't move forward unit the underwriter accepts or provides them other information to move your file forward. Your real estate agent has nothing to do with any delays of your loan process.
0 votes Thank Flag Link Thu Aug 1, 2013
If they are telling you that it's with the underwriter, that's your lender. You need a clear to close letter from the lender to proceed with the deal. Until you clear underwriting, you can't close. Purchasing a Fannie Mae forclosed home requires almost twice the paperwork of a home purchased from a private seller.

Fannie Mae asset managers are working overtime with the piles of foreclosed homes that are working through the system. The asset manager may have over 100 deals she is working on at any given time. There are some great deals to be had in a foreclosed home but it takes more time to close them because of the backlog. It's kind of like trying to get a table at the most popular restaurant. If you don't mind the long wait, the food is pretty good. If you want to go eat at another place then get of of the long line and quit complaining.
0 votes Thank Flag Link Thu Aug 1, 2013
You might try taking your case to your lender's home office... I'm convinced that doing so expedited my case a great deal!

Today came the final "insult" from Fannie Mae when my realtor called to tell me that funding occurred and I could PICK UP THE KEYS TO THE HOUSE THAT WERE ON TOP OF THE METER OUTSIDE OF THE HOUSE (a 50-mile round trip just to pick up keys!). I cannot believe the AUDACITY that Fannie Mae (or my realtor) had to actually put the keys to the house outside on top of the meter. I have never heard of such a thing I was infuriated and dumbfounded. FM is supposed to 'DELIVER THE KEYS AFTER FUNDING TO THE BUYER": HA!. They're all pointing fingers at each other and have even gone so far as to blame an unknown party by the name of "Bob" (and their only concern is that this "Bob" character was double-dipping FM). UNBELIEVABLE! Florida is truly STILL the wild, wild, west.
0 votes Thank Flag Link Tue Feb 19, 2013
Yeah they're no fun sometimes. It does take some time regardless of who's working on it though. You've got to remember that getting an offer accepted is the easy part. The hard part is getting it to close. That's where your realtor's level of experience counts. Make sure they ask you the right questions ahead of time like... Do you have your last 2 years of tax returns? Can you furnish bank statements? Can you verify mortgage/rent payments have been on time for the last year? Are you 1099 or W2? Things like that are important for your realtor to know so they can place you with the right mortgage broker and know of any potential underwriting "hickups" that could happen. I hope you have better luck in the future and wish your realtor was more help.
0 votes Thank Flag Link Mon Feb 18, 2013
I am buying a Fannie Mae home with "Cash" we are now on a 3 rd extension!! Our realtor is no help either. I think it's just another bunch of typical government b******t! NO ONE KNOWS WHAT THEY ARE DOING!!! good luck with yours!
0 votes Thank Flag Link Fri Feb 15, 2013
I finally closed last week after 6 extensions and day to day 6 months after signing the Executed Contract. I almost lost the apt and nothing was my fault... All Fannie Mae's negligence... so good luck! But if you love the place, just be patient, it was worth it for me.
Flag Fri Feb 15, 2013
I had to extend my Fannie Mae Homepath closing five times before I contacted my lender's home office and pressed them as to why the hold-up. Now I'm trying to figure out how long it will take to actually get the keys (FM doesn't give the keys at closing... they wait for funding! And who knows how long that will take!!!!!)
0 votes Thank Flag Link Wed Feb 13, 2013
Sadly some mortgage company are better at these loans then other's. if you chose to use your own title company verus Fannie Mae's the process tends to take less time. usually these loans take 60 days when you use their title company. If it were me I would call my mortgage guy everyday,2 times a day and ask for an update. ask everytime what is the hold up. after the 3rd time he gave you the same answer I would ask for his boss. And then continue to call until it was complete. If he ask you for something twice it's because he lost it or the underwriter wants it in different form. just give it to them and keep going. I wish you luck but keep on him or her. Sorry not all are that easy to work with.
0 votes Thank Flag Link Wed Jan 23, 2013
I have been waiting 5 months after I signed my Executed Contract with Fannie Mae... I am on my 5th extension and still no news of a closing date from Fannie Mae... They are the worse!! Just know that I am a financed buyer... just waiting for Fannie Mae to decide to pay the flip tax they owe to the building. A real nightmare!!
0 votes Thank Flag Link Tue Jan 22, 2013
Fannie Mae used to move very quickly, but especially with Condos, some delays can be because they negotiate with the HOA for no more than 6 months back payments. However, as many others have stated, 45 days is the norm on these loans. A HUD contract requires 45 days in the offer for an REO property.

Also, just a regular sale, using FHA financing will almost always take at least 45 days, even with preapproval. If you like this condo, wait at least two weeks then state that you will withdraw if closing is not scheduled. Ask your Realtor to call the closing agent and ask why the delay. It also might be making sure Title is clear. I work with investor and we had two Fannie Mae sales fall apart because they could not give clear title.
0 votes Thank Flag Link Tue Jan 22, 2013
THIS IS NOT A SOLUTION: I'm in the middle of a Fannie Mae deal myself, but when the "appraisal" came in $18,000 below asking price, I backed out of the deal... a week later I received an email from my realtor that "FM public entity department is considering approving at the appraised value". Well, that isn't exactly comforting. I'm not sure I should get back into the game because absolute confirmation could take a long time... knowing FM! A realtor recently told me that FM took 2 years to close on someone's deal. YIKES!
0 votes Thank Flag Link Fri Jan 11, 2013
I'm definitely not a realtor or an expert in these matters, but I will personally never deal with Fannie Mae again. If I were you I'd look at the low "appraisal" as a sign and run far, far away. As I stated in a reply to another answer below, we ended up walking away from the condo. Dealing with Fannie Mae was the most stressful, aggravating, ridiculous experience I have ever encountered. I guess if you have months, even years to buy a home then have at it. I had neither the time nor the patience for them. We ended up buying a foreclosed home and had the keys in hand within weeks. We never looked back and thank our lucky stars we walked away from FM. Good luck with your decision.
Flag Fri Jan 11, 2013
This is happening to me RIGHT NOW! Going on extension #2. It's litterally one thing after another. I have a clear to close, Fannie now wants to review the loan packet so fingers crossed. I want to walk away from this because of my anxiety but I'm a fighter and this condo will be mine. Hope it all worked out well ... As I just noticed this post is from 2010.
0 votes Thank Flag Link Sat Sep 15, 2012
Hey tyler what happened? I am doing the same thing right now...
Flag Tue Mar 25, 2014
Hi Tyler, I am so sorry! It was a nightmare for us. After filing three extensions, we were told closing was in one week. This was the only reason we moved out of our rental, to avoid paying for another months lease as our landlord refused to reimburse us. We put 99% of our belongings in storage and moved into a hotel. Long story short we were in a hotel for almost 6 months. We filed more extensions, and after about 3 months of nothing but headaches, were told that the bank was pulling our loan. Apparently, with condos they check the ratio of renters vs owners. Because of the high foreclosure rate, it is really hard to get into a condo. Why it took that long for us to find that info out I will never know. That was the second condo we had tried to buy. We gave up on condos, and honestly I'm thankful all that happened now. We found a beautiful home in a nice community. Closing was quick and mostly stress free. I wish you all the best. Fannie Mae is in no hurry. Fingers crossed you get it.
Flag Sat Sep 15, 2012
Hi Mme,

45 days was the norm until recently. Extra red tape and check and rechecks have streatched the process out to 60 days. Today I was informed an offer a client made yesterday had been accepted and then they attached the special Addendums that each foreclosed home requires to complete the offer. In the instructions we were told to specify a closing date at least 65 days.

5 weeks is well within these time frames.

Did you get a copy of the fully executed purchase and sale agreement and then the Fannie Mae Addendums?

Here in Florida a contract is NOT A CONTRACT until it is signed by all parties and delivered to all parties.


Good Luck,


JD Weisenburger


Coldwell Banker Vanguard Realty

(904) 553-0079
Web Reference: http://www.neflahomes.com
0 votes Thank Flag Link Thu Sep 16, 2010
Sometimes loan can take two weeks and other times it can get held up for various reasons. Once in a while you'd get an udnerwriter who picking on everything. What your loan officer needs to do is explain to you in detail what the hold up is. If he's being dodgy, then i would start worrying.
I don't think you should walk just because the loan officer is taking too long. You found a great deal and a property you love- fight for it.

If you start feeling that the loan won't go through, give us a call. We own a Florida mortgage brokerage and have gotten loans through in as few as 4 days. Good Luck!

Andrew Ollick
Amerivest Realty
Faith Home Loans
239-206-4500
eo@oceanhomesrealty.com
http://www.andrewollick.com/realestateblog
0 votes Thank Flag Link Fri Sep 10, 2010
Most of these loans typically take 45 days to close. The closing date should have been set for 45 days from when the fully executed contract was sent to your realtor. If that was done, then you would not need 2 extensions. I don't know why you were told it would take a week or two. Perhaps, its a disconnect in the communication with the loan officer.

Good luck!
Web Reference: http://www.DesariJabbar.com
0 votes Thank Flag Link Thu Sep 9, 2010
If all of the paperwork has been completed AND your loan is in order a typical Foreclosure sale may close in anywhere from 25-45 days. Things can pop up that must be done, for example, required maintenance before an appraiser will sign off, etc. however the listing agent co. should be able to remedy these things quickly. It sounds like the holdup is on your lender's side and not the FM homepath side. I would put your Realtor to work, schedule a conference call between he/she and the lender so all parties are present so that a timeline and expectations can be fleshed out. Condos can also have unique requirements as well but any good lender and Realtor wouldve already worked through those things as well.
0 votes Thank Flag Link Thu Sep 9, 2010
Hi Mme,

Your REALTOR should be able to assist you more with whatever is taking so long. Typically, a foreclosure should only take about 30-45 days to close. The underlying bank has already gone through the entire process and really just would like to have the property off their books.

Did your agent provide a bank addendum and was that executed? Foreclosed properties usually have an in-depth addendum that must be executed prior to closing.

Good luck!

Lynn Brier-De La Cruz, REALTOR
904-343-8586
Web Reference: http://www.LynnSellsJax.com
0 votes Thank Flag Link Thu Sep 9, 2010
Have you received the executed contract back from FM yet? I have processed a number of FM contracts for an investor I work with, and that date is the most important part. You should be able to close within 45 days after receiving the executed contract.
Flag Thu Oct 10, 2013
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